Robe Australia seeks to acquire coal licence in Gobi Altai Province, south west Mongolia
Robe Australia (ASX: ROB) has executed an option to acquire a coal exploration licence covering 3,000 hectares in the Gobi-Altai province in south-west Mongolia.
The Tsagaan Gol exploration licence area falls within the Mongol Altai coal district that bears Upper Permian Carbonification.
The licence area is adjacent to the Ar Zuun Gol coking coal exploration area which is being developed by Hunnu Coal (ASX: HUN). Ar Zuun Gol covers 25,640 hectares, and consists of two contiguous exploration licences. Drilling at Ar Zuun Gol is underway, with analysis and modelling to be completed to define JORC resources by the end of 2011.
To acquire Tsagaan Gol, Robe will pay an initial, non-refundable option fee of US$100,000, and has 60 days to undertake due diligence.
Subject to due diligence, the exercise fee for the option is US$400,000, together with 100 million Robe shares, equivalent to 17.98% of the issued capital of Robe, subject to Australian Securities Exchange listing rules.
Robe was formerly a financial services company, however in August this year it finalised the disposal of its subsidiaries and put forward a recapitalisation strategy that would involve the placement of 100 million shares at $0.005 with a free attaching option exercisable at $0.01 on or before December 31, 2014.
The proposed acquisition constitutes a change in the nature of Robe’s activities, and as such the company is required to obtain shareholder approval at a general meeting, and to re-comply with Chapters 1 and 2 of the listing rules.
If the transaction is approved by shareholders, the company’s securities will be suspended from trading until the requirements of Chapters 1 and 2 have been satisfied.
If the option is exercised, it is likely that a further capital raising will be required to fund further exploration and development of the coal asset.
The board of Robe has advised that if it elects not to exercise the option or the option lapses within the 60 day due diligence time limit, trading in the company’s shares will be suspended by the ASX, due to the company not having had sufficient activities since February 2011.
The Tsagaan Gol exploration licence area falls within the Mongol Altai coal district that bears Upper Permian Carbonification.
The licence area is adjacent to the Ar Zuun Gol coking coal exploration area which is being developed by Hunnu Coal (ASX: HUN). Ar Zuun Gol covers 25,640 hectares, and consists of two contiguous exploration licences. Drilling at Ar Zuun Gol is underway, with analysis and modelling to be completed to define JORC resources by the end of 2011.
To acquire Tsagaan Gol, Robe will pay an initial, non-refundable option fee of US$100,000, and has 60 days to undertake due diligence.
Subject to due diligence, the exercise fee for the option is US$400,000, together with 100 million Robe shares, equivalent to 17.98% of the issued capital of Robe, subject to Australian Securities Exchange listing rules.
Robe was formerly a financial services company, however in August this year it finalised the disposal of its subsidiaries and put forward a recapitalisation strategy that would involve the placement of 100 million shares at $0.005 with a free attaching option exercisable at $0.01 on or before December 31, 2014.
The proposed acquisition constitutes a change in the nature of Robe’s activities, and as such the company is required to obtain shareholder approval at a general meeting, and to re-comply with Chapters 1 and 2 of the listing rules.
If the transaction is approved by shareholders, the company’s securities will be suspended from trading until the requirements of Chapters 1 and 2 have been satisfied.
If the option is exercised, it is likely that a further capital raising will be required to fund further exploration and development of the coal asset.
The board of Robe has advised that if it elects not to exercise the option or the option lapses within the 60 day due diligence time limit, trading in the company’s shares will be suspended by the ASX, due to the company not having had sufficient activities since February 2011.
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